What is the main function of an Invoice in QuickBooks?

The primary function of an Invoice in QuickBooks is to request payment from customers for goods or services provided. When a business sells products or offers services, it generates an invoice which details what was sold, the quantity, the price, and any applicable taxes. This document serves as a formal request for payment and can be sent to the customer to initiate the payment process. Additionally, it allows businesses to clearly communicate their payment terms, due dates, and other relevant information regarding the transaction.

When managed properly, invoices enhance cash flow as they help keep track of unpaid amounts, which can be critical for maintaining a healthy financial position. They also serve as essential documentation for both the seller’s and buyer’s record-keeping, aiding in tracking sales and managing accounts receivable efficiently.

The other options provided do not align with the primary purpose of an invoice. Tracking employee hours worked pertains to payroll functions, recording outgoing expenses relates to accounts payable and expense management, and summarizing sales tax collected deals with tax reporting, none of which encapsulate the core intent of invoicing.